Unit - V
Multiple Choice Questions (MCQs)
-
What is a market in economic terms?
a) A place to shop
b) A mechanism for exchanging goods
c) A storage facility
d) A type of monopoly
Answer: b -
Which of the following is not a type of market structure?
a) Monopoly
b) Perfect competition
c) Monopolistic competition
d) Inflation
Answer: d -
Perfect competition is characterized by:
a) Few buyers
b) Single seller
c) Large number of buyers and sellers
d) Government control
Answer: c -
Monopoly means:
a) Few firms selling similar products
b) Many firms selling identical products
c) Single seller dominates the market
d) Price controlled by government
Answer: c -
Which is a feature of monopolistic competition?
a) Homogeneous products
b) Single seller
c) Product differentiation
d) No competition
Answer: c -
Oligopoly refers to a market where:
a) One firm controls the supply
b) Few firms dominate the market
c) There are no sellers
d) All firms are public sector
Answer: b -
In perfect competition, firms are:
a) Price makers
b) Price takers
c) Monopoly holders
d) Price controllers
Answer: b -
Which of the following markets has barriers to entry?
a) Perfect competition
b) Monopoly
c) Both a and b
d) None of the above
Answer: b -
What happens to the supply when the price of a good increases?
a) Supply increases
b) Supply decreases
c) Supply remains constant
d) Supply vanishes
Answer: a -
The law of supply shows a relationship between:
a) Price and demand
b) Income and price
c) Price and supply
d) Supply and cost
Answer: c -
The law of supply is based on the assumption that:
a) Price remains constant
b) Other factors remain constant
c) Income decreases
d) Costs remain variable
Answer: b -
A demand curve generally slopes:
a) Upward
b) Downward
c) Horizontally
d) Vertically
Answer: b -
In monopoly, price is determined by:
a) Market demand
b) Government
c) Competitors
d) Monopoly firm
Answer: d -
Which of the following is a characteristic of oligopoly?
a) Price rigidity
b) Free entry and exit
c) Many sellers
d) Homogeneous product
Answer: a -
Monopolistic competition includes:
a) Homogeneous products
b) No advertisements
c) Product differentiation and selling cost
d) Single seller
Answer: c -
Price determination is the interaction of:
a) Supply and cost
b) Demand and cost
c) Demand and supply
d) Income and demand
Answer: c -
Which of the following best describes demand?
a) Want with money
b) Need without money
c) Desire to own
d) Willingness to work
Answer: a -
If supply is greater than demand, the price will:
a) Increase
b) Decrease
c) Stay the same
d) Fluctuate
Answer: b -
Which market type involves mutual interdependence in pricing?
a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic
Answer: b -
Demand and supply intersect at:
a) Shortage point
b) Equilibrium point
c) Surplus point
d) Price ceiling
Answer: b
Fill in the Blanks
-
A market is a system or place where __________ and __________ interact.
Answer: buyers, sellers -
In __________ competition, there are many buyers and sellers dealing in identical products.
Answer: perfect -
A __________ is a market structure where there is only one seller.
Answer: monopoly -
__________ competition is characterized by product differentiation.
Answer: Monopolistic -
In __________, a few firms dominate the market.
Answer: oligopoly -
The law of supply states that supply increases with an increase in __________.
Answer: price -
The __________ curve generally slopes downward from left to right.
Answer: demand -
The point at which demand and supply intersect is called the __________ price.
Answer: equilibrium -
In monopoly, the firm has control over the __________ of the product.
Answer: price -
The interaction of demand and supply determines the __________ of goods in the market.
Answer: price
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